Embodiments of the present invention are directed to systems, apparatuses and methods for accessing and paying for use of a transit system, and more specifically, to use of a contactless payment device to access and provide payment for a consumer's use of such a system. Embodiments of the invention may be used to provide access to a transit system and enable a consumer to utilize the system prior to the completion of a transaction pre-authorization process by an issuer of the payment device. Embodiments of the invention may also be used to enable a consumer to access other types of venues or systems in situations where a consumer enters the venue or system and begins using a service, with payment being provided after completion of the use of the service.
Many people make regular use of transit systems to commute to work or to travel for a variety of purposes, where such transit systems include public transit systems such as buses, subways, trains, ferries, and the like. Some form of payment is typically required to use these transportation systems. For example, a consumer may be required to have the exact fare in cash to purchase a ticket or to enter a system. This is inconvenient because a consumer may not always have cash or exact change on hand. Also, it may take time for each user to insert cash into a fare machine or to hand cash to a transit operator, causing lines and delays at each transit stop.
Some transit systems allow a patron to purchase a ticket or pass in advance from a kiosk or cashier. This may eliminate the need for the user to have cash or exact change; however, it still takes time to purchase the ticket or pass in advance and to pass the ticket or pass through a card reader, or to hand the ticket or pass to the transit operator to gain access to the transit system. In addition, different transit system options, such as a bus or subway system, are often managed by different transit agencies. Thus, for some trips, a user must purchase a ticket or pass from one transit agency and then purchase another ticket or pass from a second transit agency. This is inconvenient because the user has to have multiple tickets or passes available, and it is also time consuming for a user to have to stop and buy a ticket at different transfer points to use on a different transit system.
Another means of providing payment for transit fares is to use some form of payment card from which a fare can be deducted from a previously established balance, or to which a fare can be applied as a credit type debt to be paid at a later date. However, as with use of a ticket or pass as described above, such payment cards generally require that the user pass the card through a card reader or other mechanism, or hand the card to a transit system employee. This process is inefficient and inconvenient, as transit system users are often in a hurry and do not want to wait in lines or engage in a formal transaction process that may require time for authentication of the user and approval of the transaction.
The problems encountered in using standard payment card systems has led to an interest in the use of contactless “smart” cards or contactless smart chips as a method of paying for transit fares. A smart card is generally defined as a pocket-sized card (or other portable payment device) that is embedded with either a microprocessor and one or more memory chips, or is embedded with one or more memory chips with non-programmable logic. The microprocessor type card typically can implement certain data processing functions, such as to add, delete, or otherwise manipulate information stored in a memory location on the card. In contrast, the memory chip type card (for example, a pre-paid phone card) can only act as a file to hold data that is manipulated by a reading device to perform a pre-defined operation, such as debiting a charge from a pre-established balance stored in the memory. Smart cards, unlike magnetic stripe cards (such as standard credit cards), can implement a variety of functions and contain a variety of types of information on the card. Therefore, in some applications they do not require access to remote databases for the purpose of user authentication or record keeping at the time of a transaction. A smart chip is a semiconductor device that is capable of performing most, if not all, of the functions of a smart card, but may be embedded in another device.
Smart cards come in two general varieties; the contact type and the contactless type. A contact type smart card is one that includes a physical interface (such as a magnetic stripe or set of contacts) that enables access to the data and functional capabilities of the card, typically via some form of terminal or card reader. A contactless smart card is a smart card that incorporates a means of communicating with the card reader or terminal without the need for direct contact. Thus, such cards may effectively be “swiped” by passing them close to a card reader or terminal. Contactless cards typically communicate with the card reader or terminal using RF (radio-frequency) technology (such as a near field communications technology, RFID, etc.), wherein proximity of the card to a card reader or terminal causes data transfer between the card and the reader or terminal. Contactless cards have found uses in banking and other applications, as they may not require removal from one's wallet or pocket in order to complete a transaction. Further, because of the growing interest in such cards, standards have been developed that govern the operation and interfaces for contactless smart cards, such as the ISO 14443 standard.
Even though contactless smart cards may provide a solution to some of the problems encountered when using standard payment cards in a transit fare payment and collection environment, they do not provide a complete solution. As noted, for a user, the speed of a transaction is an important consideration. A transit patron typically does not want to wait at a transit system entry gate while their payment device (e.g., a contactless card) is authenticated and a pre-authorization is obtained from the device issuer for the expected amount of the transaction. This is an important distinction between a transit system transaction and a payment transaction for a good or service at a merchant location, where typically, a payment device is authenticated, followed by seeking authorization for a transaction amount from the issuer of the device (typically referred to as a pre-authorization). Thus, in a standard payment transaction, a good or service is not made available to the customer until after the payment device has been authenticated and the transaction has been authorized.
Another issue that arises when using a contactless payment device in a transit environment is that a patron's contactless device may not be in communication with a transit system entry terminal for a sufficient amount of time to enable the terminal to read or write transaction related data to the device. This may be required, for example, to enable calculation of fares based on an entry and exit point for the transit (e.g., by writing entry gate data to the device so that upon exit from the system, a fare can be calculated). Also, some contactless devices are not configured to permit data to be written to the device for security, interoperability (or an intentional desire to prevent certain types of interoperability), or other reasons. This means that transit system entry and exit data, and other fare calculation data may not be available for use as part of a transaction pre-authorization process. Further, in some use cases, the amount of the transit fare is not known until the user completes their use of the transit system. These factors mean that the transit fare payment and collection process can not be performed effectively for some contactless devices using a standard authentication and pre-authorization process, as would be used for a purchase transaction at a retail point of sale.
What is desired is a system and associated apparatuses and methods for enabling effective use of a contactless payment card or chip to access and pay for use of a transit system, particularly (although not exclusively) in cases where the card or chip is not configured to permit transit system or fare computation data to be written to it. It is also desired to enable use of contactless payment devices for access to and use of transit and other systems in a manner that is convenient and efficient for users of the system. Embodiments of the invention address these problems and other problems individually and collectively.